Powered by Leeds Metropolitan University
Business Studies Resources Popular resources on the {my channel} blog Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog Business Studies Blog Home Page

Business Plan - Typical Contents

Author: Jim Riley  Last updated: Sunday 23 September, 2012

The typical contents of a full form business or strategic plan are listed below.

Executive summary

  • What is the business?
  • What is the market?
  • What is the potential for the business?
  • Forecast profit figures
  • Funding requirements
  • Prospects for the investor/ lender

Description of the business

What is the business?

  • A brief description of the business idea and why it should be a success
  • History of the enterprise and its ownership
  • Information about the entrepreneur’s qualifications, experience and financial status
  • Location

Products and services

  • A description of the product and what it does
  • An explanation of ways in which the product is distinctive and unique
  • Analysis of the competition
  • How the product will be developed and what new products are being considered as replacements
  • Intangible assets & protection (e.g. copyright, trade marks)

The market

  • Size and expected growth of the market
  • Analysis of market by segments
  • Identification of target segments
  • Competitors - who they are, ownership, size, market share, likely response to the challenge
  • Customers (existing & potential) - who they are, how they buy, why they buy
  • Distribution channels

Situational audit (where are we now?)

This involves data collection and analysis

Purpose of data collection and analysis:

  • Determine which opportunities to pursue
  • Identify SWOT
  • Identify competitive advantages
  • Provide a background for the formulation of strategy

Main analytical techniques:

  • PEST/ PESTLE analysis
  • SWOT analysis
  • Competitor analysis
  • Marketing audit

Statement of aims and objectives (where do we want to go?)

  • A statement  of what the business should achieve over a five year period
  • Aims should be expressed in terms of hierarchy of objectives becoming progressively more detailed and specific
  • Vision - what the organisation will be like in the future
  • Mission statement - a statement of the overall purpose and aims
  • SMART Objectives - quantitative goals.
  • Functional objectives - objectives for the functional areas

Strategy and tactics

  • How are we to get there?
  • Strategy is the broad approach to the achievement of objectives
  • Summarises how to fulfil the objectives
  • Tactics refer to the details of the strategy e.g. the promotional mix
  • The detail will be contained in programmes and budgets

Marketing: key questions to be answered

  • Who are our customers?
  • Who are our competitors?
  • What is the size and growth rate of the market?
  • How is the market segmented?
  • What is special about our product or service?
  • What are our competitive advantages?
  • What is our marketing strategy?

Marketing plan

  • Market research
  • Segmentation and targeting
  • Detailed outline of the product or service
  • Unique selling points
  • Chosen pricing strategy
  • Promotional plans
  • Distribution strategy (including online)
  • Customer service strategy

Operations plan

  • Physical location
  • The production process
  • Facilities
  • Equipment
  • Scale & location of operations
  • Capacity - potential and effective
  • ICT strategy
  • Engineering and design support
  • Materials required
  • Inventory levels and stock control plans
  • Purchasing arrangements
  • Sources of supply of key resources
  • Quality control plans
  • Staffing requirements

Management and organisation

  • Organisational chart
  • Details of senior management
  • Corporate governance
  • Staffing requirements
  • Key personnel
  • Recruitment and selection
  • Training
  • Rewards (financial & non-financial)
  • Labour relations
  • Employment and related costs

Forecasts in the business plan

  • Sales forecast
  • Forecast profit  and loss account (income statement)
  • Cash flow forecast (cash budget)
  • In each case this should be a month by month forecast for a minimum of two years
  • Forecast balance sheet for each of the first two years
  • The assumptions behind the forecast should also be included

Financial data

  • Investment appraisal - payback and discounted cash flow
  • Break even analysis
  • Evaluation criteria for performance review
  • Ratio analysis: net profit margin, Gross profit margin, return on capital employed, liquidity and solvency analysis

Financing required

  • Details of capital required and uses
  • The plan must include details of the external finance required
  • This will be equal to the finance required less finance raise internally from existing owners and from operations
  • The plan will outline how it is proposed to raise the finance
  • Sources of finance: Short, medium and long term; Debt v equity




Other Business Study Resources You Might Like on tutor2u


Revision quizzes for business students

Starting a Business

Sources of Finance for a Startup
Franchising
Cash Flow Forecasting for a Startup
Creating & Protecting Business Ideas
Startups and Understanding the Market
Market Research for a Startup
Locating the Startup Business
Choosing a Legal Structure for a Startup
Employing People in a Startup
Generating and Protecting a Business Idea
Using Breakeven in Decision-Making

Finance

Revenues
Breakeven Basics
Costs, Revenues and Profits
Business Costs
Using Budgets
Using Breakeven in Decision-Making
Investment Appraisal Basics
Financial Strategies
Measuring and Improving Profit
Improving Cash Flow
Working Capital
Balance Sheet
Income Statement
Financial Efficiency Ratios
Profitability Ratios and ROCE
Liquidity Ratios
Gearing

Marketing

Competition
Products & Brands
Place (Distribution)
Promotion
Pricing
Price Elasticity of Demand

Business Organisation

Basics of Business Growth
Business Activities
Legal Structure Basics
Franchising
Sole Traders and Partnerships
Limited Companies
Generating and Protecting a Business Idea
Organisational Structures

People

Working in Teams
Communication Basics
Communication Methods
Workforce Planning
Recruitment, Selection & Training
Employee Motivation
Organisational Structures

Operations

Operational Objectives
Critical Path Analysis
Scale and Resource Mix
Lean Production
Capacity Management
Customer Service Basics
Managing Quality
Operational Decision-making
Using Technology in Operations
Working with Suppliers

Economic Environment

Economic Sectors
Government Spending & Taxation
Inflation
Unemployment
Interest Rates & Monetary Policy

Business Strategy

Leadership styles
Business Culture
Change Management






Add your comments and share this study note:

blog comments powered by Disqus

 

Tutor2u support for students
Teaching support and resources
Search for resources on tutor2u

Law



Refine Search by Subject
A Level Economics
Business Studies
Geography Give It A Go!
History Law
IB Diploma Politics
Religious Studies Sociology

Order Search Results By


Follow tutor2u on Twitter
   
   

tutor2u Home Page | Online Store | About tutor2u | Copyright Info | Your Privacy | Terms of Use

tutor2u

Working with Our Partners

 Zondle - Games for LearningVue Cinemas | Moneypenny | Nexcess | Really Simple Systems 

Boston House | 214 High Street | Boston Spa | West Yorkshire | LS23 6AD | Tel +44 0844 800 0085 | Fax +44 01937 529236

Company Registration Number: 04489574 | VAT Reg No 816865400

tutor2u is proud to sponsor TABS Cricket Club and the Wetherby Cricket League as part of its commitment to invest in local junior sport